MW AMC enters agreement with Goldman to sell up to 50 million shares
By James Rogers
AMC shares are down 8.1% Friday
AMC Entertainment Holdings Inc. has entered into a sales and registration agreement with Goldman Sachs Group Inc. for up to 50 million shares of Class A common stock, according to an SEC filing.
The movie-theater chain may issue and sell shares "at any time and from time to time" through sales agent Goldman Sachs $(GS)$, AMC $(AMC)$ said in the filing. AMC expects to use the proceeds from the sale "to strengthen the Company's balance sheet and reinvest in the Company's core business to elevate and differentiate the movie-going experience under the AMC GO Plan." The company announced its new GO - or "go on offense" - plan last month, marking a major investment effort to boost the moviegoing experience at its theaters.
Related: AMC touts theater investment plan but faces balancing act, Wedbush says
AMC shares, which ended Thursday's session up 5.9% after the latest social-media post from influential meme-stock trader Keith Gill, also known as Roaring Kitty, were down 8.1% at 9:57 a.m. Eastern time Friday.
Earlier this year, AMC completed a $250 million stock sale in the wake of the meme-stock rally sparked by Gill's return to social media after an absence of several years.
Related: 'MoGlicked' weekend powers AMC, Cinemark shares higher on record attendance
AMC, like rival Cinemark Holdings Inc. $(CNK)$, has been reaping the rewards of a strong Thanksgiving box office, boosted by blockbusters "Wicked," "Gladiator 2" and "Moana 2," as well as the Christmas-themed movie "Red One."
AMC's stock is down 22% in 2024, compared with the S&P 500's SPX gain of 27.8%.
-James Rogers
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December 06, 2024 10:08 ET (15:08 GMT)
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